Energy UK

11/20/2024 | Press release | Distributed by Public on 11/20/2024 06:33

Energy suppliers and government set out support to customers this winter and beyond

Energy suppliers are again pledging to help customers struggling with bills, with over £500 million of support available this winter (2024/25).

Published today, Energy UK's Winter 2024 Commitment, which is running from October 1 until March 31 2025, builds on last winter's debt commitment and outlines how 15 energy suppliers representing almost the entire market will continue to:

  • Provide a range of financial support tailored to the needs of their customers, including:
    • credit on bills or prepayment meters.
    • enhanced debt write-off schemes and hardship funds.
    • reducing or waiving the standing charges over winter for certain customers.
    • access to energy-saving devices and technology and
    • enhanced funding to charity partners and frontline organisations to target hard to reach customers.
  • Support a national debt advice campaign to raise awareness of the help available and urging people to get in touch with their supplier if they need assistance.
  • Improve the help they provide to customers through training of frontline staff and partnering with charities and debt advice organisations.

With bills still higher than they were before the energy crisis, suppliers are reporting that the demand for help and support is as high as ever.

Customer debt stood at a record £3.7 billion in June, and the average household in arrears owes over £1,500 and £1,300 on their electricity and gas respectively, which is why suppliers are committing hundreds of millions of pounds to support consumers with advice and funding.

But a long-term solution is needed to better target support, ensuring it reaches those who need it most. To address this, the Department for Energy Security and Net Zero and Department for Work and Pensions have committed to continue to work together ahead of winter 2025 to understand how both departments can better use and share data to better target support at customers that need help. Miatta Fahnbulleh, Minister for Energy Consumers, will lead a working group with industry and other stakeholders to take continued action on improving affordability and accessibility of energy.

Minister for Energy Consumers Miatta Fahnbulleh said:

"The impact of the energy crisis is still being felt by people across the country, and the government and energy suppliers are working in lockstep to help vulnerable households this winter.

"The government and industry have worked together to deliver this £500m Winter Support Commitment, and we applaud suppliers stepping up on this matter. Together with our Warm Home Discount, households who are struggling to pay their energy bills this winter will receive £1 billion of support.

"This is a first step, and I look forward to working with the industry, consumer groups and charities in the months ahead to ensure that energy is more affordable and accessible to everyone that needs it."

Dhara Vyas, Energy UK's CEO said:

"The last few years have been very challenging for millions of energy customers - including for people unused to such difficulties - and record debt levels show that many are yet to recover from a sustained period of high energy bills and an accompanying increase in the cost-of-living.

"As in previous winters, energy suppliers have already been stepping up the amount and range of support they offer to customers. There is, however, only so much they can do when a large number of households are struggling to afford energy at the price it costs to supply it.

"We've very much welcomed the Government's constructive approach in our discussions so far and the recognition this is not a temporary problem. The establishment of a working group and the commitment to look at how data sharing can help target support are important steps towards putting in place an enduring plan for future winters."

As part of the Winter 2024 Commitment, suppliers are once again supporting Citizens Advice's Speak, Seek, Save campaign with financial contributions, as well as ensuring the advice is shared on their own channels and in direct customer communication. The information has been translated into different languages, and Citizens Advice and Energy UK are also working with charities, consumer groups and organisations like the Post Office to reach as many customers as possible with advice on the actions they can take if they are struggling with bills and debt.

Over recent years, with customers facing a series of challenges such as the pandemic, record energy bills and the wider cost-of living crisis, suppliers have increased the support they provide over and above their statutory obligations, ranging from direct financial support - through writing off debt and hardship funds - to payment holidays and tailored repayment plans, increased partnerships with charities and debt advice organisations who can offer specialist help, as well as provision of equipment and other means to keep homes warm. Ofgem data has also shown a significant improvement in how suppliers respond to customer queries.

More details on the range of extra support provided by suppliers through different schemes and initiatives are available here - with the spend on this since the start of the energy crisis running into hundreds of millions of pounds.

Further illustration of the different ways suppliers have sought to help customers in need was also provided with the recent publication of the latest Good Practice Report covering the fourth year of Energy UK's Vulnerability Commitment. This is a voluntary initiative with 13 supplier signatories covering 95% of the retail market pledging to improve the way they identify and support customers in most need and being assessed on their performance by an independent expert panel.

Notes to editors

  1. Energy UK is the trade association for the energy industry with over 100 members - from established FTSE 100 companies right through to new, growing suppliers, generators and service providers across energy, transport, heat and technology. Our members deliver to nearly 80% of the UK's power generation and over 95% of the energy supply for 28 million UK homes as well as businesses. The sector invests £13bn annually and delivers nearly £30bn in gross value - on top of the nearly £100bn in economic activity through its supply chain and interaction with other sectors. The energy industry is key to delivering growth and plans to invest £100bn over the course of this decade in new energy sources. The energy sector supports 700,000 jobs in every corner of the country. Energy UK plays a key role in ensuring we attract and retain a diverse workforce. In addition to our Young Energy Professionals Forum, which has over 2,000 members representing over 350 organisations, we are a founding member of TIDE, an industry-wide taskforce to tackle Inclusion and Diversity across energy.
  • The £500 million figure is based on information provided by suppliers to Energy UK about support they will provide including money off bills, in-kind support, debt write-offs, direct debit reductions and payment holidays. It excludes statutory programmes such as Warm Home Discount as well as other forms of mandatory support.
  • The Winter 2024 commitment runs from 1 October until the end of March 2025 and is available here. Energy suppliers that have made the commitment are: British Gas, E, Ecotricity, EDF, E.ON Next, Good Energy, Fuse, Octopus Energy, Outfox the Market, OVO Energy, Rebel Energy, ScottishPower, So Energy, Utility Warehouse and Utilita.